The fi nal comprehensive CRM model comes from Gartner Inc. Gartner Inc. is a leading IT research and advisory company that employs some 1200 research analysts and consultants in 75 countries, and has a signifi cant place in CRM research. Figure 1.4 presents Gartner’s CRM competency model.
Introduction to customer relationship management 21
Strategy development process
Value creation process
Multichannel Integration process
Customer segment lifetime value analysis Integrated channel managemnt
Performance assessment process Business strategy
Business vision Industry and competitive characteristics
Customer strategy Customer choice and customer characteristics Segment granularity
Value Organization receives Acquisition economics Retention economics Value Customer
receives Value proposition Value assessment
Back office applications Front office
applications Analysis tools
Information Management Process IT systems
Sales force
Outlets
PhysicalVirtual
Telephony Cocreation
Direct marketing
Electronic commerce
Mobile commerce
Data repository
Shareholder results Employer value Customer value Shareholder value Cost reduction
Performance monitoring Standards Quantitative and qualitative measurement Results and key performance indicators
Figure 1.3 Payne’s model of CRM22
1. CRM vision: Leadership, Social worth, Value proposition 2. CRM strategy: Objectives, Segments, Effective interaction
8. CRM metrics: Cost to serve, Satisfaction, Loyalty, Social costs 7. CRM technology: Applications, Architecture, Infrastructure 6. CRM information: Data, Analysis, One view across channels 5. CRM processes: Customer life cycle, Knowledge management
Culture and Structure Customer Understanding People: Skills, Competencies Incentives and Compensation Employee Communications Partners and Suppliers 4. Organizational collaboration 3. Valued customer experience
Understand Requirements Monitor Expectations Satisfaction vs. Competition Collaboration and Feedback
Figure 1.4 Gartner’s CRM model
References
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(2005). CRM shifts the paradigm. Journal of Strategic Marketing , Vol.
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2. http://www.forrester.com/Research/Document/Excerpt/0,7211, 43091,00.html . Accessed 13 September 2007.
3. http://whatis.techtarget.com/defi nition/0,289893,sid9_gci213567, 00.html . Accessed 29 November 2005.
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7. http://www.destinationcrm.com/articles/default.asp? ArticleID 5460 .
Summary
In this chapter you have learned that the expression CRM has a variety of meanings.
Four types of CRM have been identifi ed: strategic, operational, analytical and collaborative. There are many misunderstandings about CRM. For example, some people wrongly equate CRM with loyalty programmes, whereas others think of CRM as an IT issue. Although CRM is generally thought of as a business practice, it is also applied in the not-for-profi t context. A number of different constituencies have an interest in CRM, including CRM consultancies, CRM software vendors, CRM application service providers, CRM hardware and infrastructure vendors, companies that are implementing CRM and their customers. A number of different models of CRM have been developed.
Finally, we have produced a defi nition that underpins the rest of this book. We defi ne CRM as the core business strategy that integrates internal processes and functions, and external networks, to create and deliver value to targeted customers at a profi t.
It is grounded on high quality customer-related data and enabled by information technology.
The model suggests that companies need competencies in eight areas for CRM to be successful. These include building a CRM vision, developing CRM strategies, designing valued customer experiences, intra and extra-organizational collaboration, managing customer lifecycle processes, information management, technology implementation and developing measures indicative of CRM success or failure.
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and Rogers, M. (2000)The 1-to-1 manager . London: Piatkus; Peppers, D. and Rogers, M. (2001) One-to-one B2B: CRM strategies for the real economy . London: Piatkus; Peppers, D. and Rogers, M. (2004) Managing customer relationships: a strategic framework . Hoboken, NJ:
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